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Irish Agenda: Retail giants set store by Harney and a change of heart

NOW that Mary Harney, the tanaiste, has confirmed that the government is reviewing the retail planning guidelines, the battle will begin in earnest over the controversial caps on super stores.

Under the current rules, which were introduced in 2001, net retail space for standalone developments is capped at 3,000 sq m outside of Dublin and 3,500 sq m in the capital. Retail warehouses, meanwhile, cannot exceed 6,000 sq m. This is less than half the size that UK DIY giant B&Q normally likes. It is also about a quarter of what Ikea, the Swedish furniture warehouse operator, needs to open one of its super stores in Ireland. Ikea has already told the government that it will not set up in Ireland unless the rules are changed.

Of the grocers, Tesco, the UK supermarket giant, would also presumably welcome the opportunity to open a couple of hypermarkets here at some point